Section 125 Plans—Course Outline

Module 1: Introduction to Section 125—Background

1. Introduction to Section 125—Background
   1. Social and Legislative History of Section 125
   2. Goals of Section 125
   3. Structure of Section 125
   4. Section 125 Law

Module 2: Types and Structures of Section 125 Plans

1. General Types of Section 125 Plans
   1. Cafeteria Plans
   2. Premium-Only Plans
   3. Flexible Spending Plans
2. Variations on Cafeteria Plans
   1. Modular Plans
   2. Core-Plus Plans
   3. Working Spouse Plans
   4. Full-Menu or Total Flexible Benefit Plans
   5. Premium-Only Plans
   6. Flexible Spending Arrangements
3. Employee Contributions
4. Individual Health Plans
5. Carrier-Plan Interactions

Module 3: Introduction to Section 125—Qualified Benefits and Motivations for Plan Sponsors and Participants

1. Qualified Benefits
   1. Lines of Coverage Eligible for Section 125
   2. Long-term Care
   3. Account-Based Plans
2. Motivations for Plan Sponsors
   1. General Pros and Cons
3. Motivations for Employees
   1. Benefit Level Choices
   2. Waivers

Module 4: Internal Revenue Code

1. General Tax Advantages
2. Federal Income Tax: Plan Sponsor
3. Federal Income Tax: Employee
4. Domestic Partner Benefits
5. State Tax for Employees

Module 5: Cost Control Advantages

1. Defined Contribution Atmosphere
2. Plan Design and Cost
3. Adverse Selection
4. Comparison With Traditional Plan Cost-Cutting Measures
5. Cost-Conscious Purchasing

Module 6: Flexible Spending Accounts

1. Flexible Spending Accounts
2. Health FSAs
3. Eligible Expenses
4. Administration Requirements

Module 7: Flexible Spending Accounts (Continued)

1. Dependent Care FSAs
   1. Eligible Expenses
   2. Administrative Requirements
   3. Adoption Assistance FSAs
2. FSA-HSA Interactions
   1. Limited-purpose Health FSA
   2. Post-Deductible Health FSA
3. Uniform Reimbursement
4. Use-It-Or-Lose-It Rule
5. FSA Grace Period History
6. FSA Grace Period General Information
7. FSA Grace Period—HSA Interactions

Module 8: Implementation and Administration

1. Funding
   1. Employee Contributions
   2. Employer Contributions
2. Election and Enrollment Options
3. Renewals
4. Reports
5. Rules Governing Mid-Year Changes

Module 9: Section 125 Interaction With Other Federal Laws

1. ERISA
   1. Reporting and Disclosure Requirements
   2. Form 5500
2. FMLA
3. COBRA
4. HIPAA
   1. HIPAA and Dependents
   2. HIPAA and Marriage
   3. HIPAA and Birth, Adoption or Placement for Adoption

Module 10: Nondiscrimination Requirements

1. Federal Nondiscrimination Rules
2. Highly Compensated Employees
   1. Code Section 125(e)
   2. Code Section 414(q)
3. Eligibility Test
4. Benefits and Contribution Test
   1. Contribution Test
   2. Health Benefit Test
   3. Summary